Delayed Child Support - How Much Interest Will You Pay?

If you’re paying child support, don’t be remiss with your payments unless you want to pay interests on your delayed support obligations. There are states that attach the support fees to one’s paycheck but, in some cases, the parent is required to send the check on time. What’s worse is if you cannot pay support because you lost your job or are in a financial fix.See Pasadena attorney.

Not all states impose interests on late payments though but it is getting to be more appealing to others and the practice is more common now. States who have this provision start imposing interests on delayed support from the first day the check is delayed and every day henceforth, which will be very bad for you if you or your child happens to live in such a state.

There are two reasons they have thought of this imposition, the first of which is states believe that parents will avoid delaying their payments for any reason if there’s a penalty on delayed payments. This is the weapon states use to make sure support-paying parents send their payments on time every time. No parent would want to pay interests on what he is already obligated to pay for his child in the first place.

The interest on past due support is to compensate the child; this is the other reason for its existence. If a child has to wait for support from a parent, he or she is suffering during that waiting period. Depending on the custodial parent’s situation, this suffering can be of varying degrees. Regardless of the situation, states think that children who have to wait deserve to be further compensated to lighten up their suffering. See Pasadena bankruptcy lawyer.

The interest rate imposed on delayed payments is determined by the state of residence. The state may use a set rate of between 10% and 12%. The state with the highest set interest rate is Maine which is 15%. Missouri, on the other hand, has the lowest interest rate which is 1% per month.

There are many states who don’t have a predetermined interest rate. The custodial parent has to prove to the court that support payments are late and the court will then decide on how much interest is due. Some states simply indicate that a “lawful rate” will be imposed on past due payments. These types of provisions are done to distinguish those parents who have valid reasons for being delayed as opposed to those who are simply remiss with their obligations for any reason.
Many parents find the interest rate on delayed payments to be a significant deterrent for late payments.

The courts are busy deciding on many problems brought about by predetermined interest rate on late payments. In most instances, these cases are not released from the predetermined interest rate upon plea.